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1
 Chapter Objectives
 Define the term management and explain the
managerial significance of the terms effectiveness and
efficiency.
 Understand the different roles and sub-roles of a
manager.
 Distinguish between managerial functions and skills
and identify the four basic managerial functions.
 Identify and summarize five major sources of change
for today’s managers.

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 Four Realities of Managing Today
1. The only certainty today is change.
2. Speed, teamwork, and flexibility are the orders of
the day.
3. Managers at all levels need to stay close to the
customer.
4. Without continuous improvement and lifelong
learning, there can be no true economic progress
for individuals and organizations alike.

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3
 Management Defined
 Management (Cassidy/Kreitner)
 Management is the process of working with and through
others to achieve organizational objectives in a changing
environment.
 Management entails the effective and efficient use of
limited resources.

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4
 Working with and Through Others

 Management is a social process in which

managers get things done by working with
and through others.

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 Figure 1.1
Key Aspects of the Management Process

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 What Is Management?

Management

The process of planning, organizing, leading

and controlling Human, Financial, Material and
Information Resources in order to effectively
and efficiently achieve organizational goals and
objectives in a changing environment.

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 Four Functions of Management
1. Planning: Formulation of the future courses of action by
establishing goals and objectives to be achieved by the
organization. It is the primary function of management.
2. Organizing: Deciding on the human resources structure
of the organization. Ensuring that tasks have been
assigned and the structure of organizational relationships
are created to facilitate meeting organizational goals.
3. Leading: Serving as role models and adapting
management styles as the situation demands. Relating
with others so that their work efforts result in the
achievement of organizational goals.
4. Controlling: Comparing desired results with actual results
and taking corrective action as needed.
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Organizational Resources
 Human Resource - Most important among the
resources of the organization. It includes
employees, laborers, managers, supervisors
 Financial Resource - Money, Investments
 Material Resource – Buildings, Equipment,
Machineries, Computers, Vehicles, Tables, etc
 Information Resource – Company records such as
Employees database, customers database,
products database, Company website, etc.
(Intangible resources)
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Managerial Skills
 Conceptual Skills
 The ability to think about complex and broad
organization issues. Seeing the organization as a big
picture.
 Human Skills or Interpersonal Skills
 Abilities in getting along with people, good leadership
style, helping others to be motivated, communication
and conflict resolution
 Technical Skills
 Expertise in a particular area—marketing, accounting,
finance , human resources, etc.
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 The Management Levels
 Top Management ( Chief Executive Officers (CEOs),
President, EVP, SVP, VP, General Managers
 Have organization-wide managerial responsibilities—
 Middle Management – ( Functional Managers, Product-
line Managers, Department Heads )
 Manage first-line managers –
 Bottom or Lower Management - ( Unit Managers, First-
line Supervisors, Foreman )
 Manage the work of employees who are involved in the
actual production or creation of an organization’s
products or services -

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Management
Levels Managerial Skills
TOP
MANAGEMENT CONCEPTUAL
SKILLS

HUMAN SKILLS
MIDDLE
OR
MANAGEMENT
INTERPERSONAL
SKILLS

BOTTOM/LOWER TECHNICAL
MANAGEMENT SKILLS

As illustrated above, Technical skills are most important at the

bottom and middle management levels. Human skills are important
at all levels of management. Conceptual skills are relatively
unimportant at the bottom management level but become the most
important skill, relative to the other two, at the top management
level. 12
 Managerial Roles and Sub-Roles
1. Interpersonal Roles. How manager interacts with
other people. With the following sub-roles:

 Leader – when they initiate and coordinate

activities in their organization.
 Liaison – when managers interact with persons in
other units within and outside the organization.
 Figurehead – when managers represent the
organization in the outside world in ceremonial
and civic activities.

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 Managerial Roles and Sub-Roles
2. Decisional Roles. How manager uses information in
decision making. With the following sub-roles:

 Resource Allocator – distributes funds, personnel, materials

and other resources for effective and efficient use in the
organization.
 Negotiator – managers are involved in negotiation activities
with suppliers, customers, union, government, etc.
 Entrepreneur – identifies new opportunities and the
development of these into new products, services, methods
or activities within their organizations.
 Crisis Handler – He identifies solutions and take action to
overcome the day to day problems of the organization.
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 Managerial Roles and Sub-Roles
3. Informational Roles. How manager exchanges and
process information. With the following sub-roles:

 Monitor – Monitor the flow of information from various

parts of the organization, both in the upper and lower
levels
 Disseminator - a key role in transmitting and
disseminating information to other parts of the
organization.
 Spokesperson – The managers’ leadership positions
require them to represent and speak to other units of the
organization and outsiders.

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 Achieving Organizational Objectives
 An objective is a target to be strived for and
attained.
 Challenging yet achievable objectives provide
guidance for effective and efficient actions by
individuals and organizations.
 Organizational objectives always require collective
action.
 Organizational objectives serve as measuring sticks
for performance.

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 Balancing Effectiveness and Efficiency

 Effectiveness  Efficiency
 Doing the right thing  Doing things right
 Entails promptly achieving a  Entails balancing the
stated organizational objective amount of resources used to
 Given the reality of limited achieve an objective against
resources, effectiveness alone what was actually
is not enough accomplished
 The more favorable the ratio
of benefits to costs, the
greater the efficiency

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 Figure 1.2: Balancing
Effectiveness and Efficiency

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 Figure 1.2: Balancing
Effectiveness and Efficiency (cont’d)

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19
 Figure 1.2: Balancing
Effectiveness and Efficiency (cont’d)

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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 PRELIM ASSIGNMENT#1

“Green Management: Toward Sustainability”

Greater efficiency gives the Union Pacific Railroad a green edge
over truckers (Page 8)
Questions:
1. How do increased efficiency and productivity
improvement help businesses protect the natural
environment?
2. What eco-friendly efficiencies can you achieve in your
daily life?

INSTRUCTIONS: Use 1 whole yellow pad, write your name,

course, year, section & date. Write your
answers only.
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Coping with a Changing Environment
Five Major Sources of Change for Today’s Managers
1. Globalization - communications, transportations,
computer, music, economics link the world together.
2. The Evolution of Product Quality. The emphasis is on
continuous improvement of personnel, processes and
product.
3. Environmentalism and Sustainability – green issues such as
deforestation, global warming, depletion of the ozone layer,
toxic waste, food safety, pollution of land, air and water.
4. Ethical Reawakening – managers are under strong pressure
from the public to refrain from discrimination, illegal
campaign contributions, hoarding, price fixing, selling
unsafe products, etc.
5. The Internet and Social Media Revolution
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 Figure 1.5: The Honeywell Study:
How Managers Learn to Manage

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 How Can Future
Managers Learn to Manage?

 Future managers can learn by

 Integrating management theory (i.e., formal training
and education) and managerial practice (e.g., work-
study and internships). 20%
 Observing role models. 30%
 Learning from experiences in the school of hard
knock. 50%

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24
 MGNT 101 PRELIM SEATWORK (Chapter 1)

NAME:____________________ COURSE/YR/SEC:_______
DATE: ___________

QUESTIONS:

What managerial skills do you feel you already have? Which

ones do you think will be important for you to develop to
succeed in management?

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